- Sales, distribution, license and consultancy agreements may need to be localized to comply with applicable state and federal laws.
- Intellectual Property Protection
- In the US, UK or European rights typically may not be relied on to ensure use and registration of a business name in the US; trademark rights in the US arise through prior use rather than purely from registration.
- A trademark search should identify if there are any competing marks and if there is a registered mark in the UK, it may well make sense also to register the mark in the US; federal trademark registration provides additional protection if another party were to use the name.
- US patent filing may also be prudent.
- Industry regulations
- Determine if your industry is subject to local, state or federal regulations in the US, such as franchising, which is heavily regulated at state and federal levels.
- Taxes may be payable at state and federal levels and local taxes may also be payable. Taxes include income, payroll, property, excise, and business license, sales and use taxes. Consider any foreign tax reporting requirements.
- US tax reporting requirements and methods vary between states and most states levy an income or franchise tax and municipalities such as counties, cities and other state governmental subdivisions also enforce and collect property
- Regulations on transfer pricing among corporate affiliates (to ensure arms-length pricing and avoid profit-shifting) may apply and tax advice should be taken on inter-company transactions..
- Almost every state levies a tax for the purchase or use of goods or services within their jurisdiction. This is known as the sales and use tax.
- The general rule is that all sales of personal (tangible) property are subject to the sales and use tax unless specifically exempted (many states provide exemptions as incentives for manufacturers or other important industries) and all sales of services are exempt unless specifically taxed
- Review leases for premises or purchased property; consider zoning, permitting, and environmental law issues.
- Obtain insurance such as for general liability, workers’ compensation, directors, officers and employment practices.
We wish you every success doing business in the US!
MBM Commercial has experience in guiding businesses through the process of setting up new operations in the U.S and we value the opportunity to work with growing businesses and the new relationships and opportunities they open up for us.
MBM Commercial provides this material for informational purposes only and specific advice should be sought for each state in which a business will be conducted… The above information is general and is not intended to be legal advice. Nothing herein should be relied upon or used without consulting a lawyer to consider your specific circumstances, possible changes to applicable laws, rules and regulations and other legal issues.